Microsoft-backed OpenAI hits $2 billion revenue milestone: Report

OpenAI, a leading artificial intelligence (AI) startup supported by Microsoft, has achieved a significant milestone by surpassing $2 billion in revenue in December, as reported by the Financial Times, citing sources familiar with the company's financial performance.

According to the report, OpenAI is optimistic about its future prospects, aiming to more than double its revenue by 2025. This ambition stems from a growing demand from corporate clients seeking to leverage its generative AI tools in various workplace applications.

Earlier reports from The Information indicated that OpenAI's annualized revenue reached over $1.6 billion in December, primarily driven by the robust growth of its ChatGPT product. This marked a notable increase from $1.3 billion recorded as of mid-October.

Investors have demonstrated significant confidence in the San Francisco-based startup, valuing it at more than $80 billion.

Sam Altman, the CEO of OpenAI, is reportedly engaged in discussions with potential investors, including entities from the United Arab Emirates (UAE), to secure funding for various technology initiatives. These initiatives aim to enhance global chip-building capacity and bolster OpenAI's capabilities in powering AI applications, among other objectives, as reported by the Wall Street Journal on Thursday.